Category: Daily Pre Market Picture

At 8:00 am IST, the SGX Nifty Futures was trading at 14,642, compared with Nifty’s Tuesday close of 14,505.

Market status: Downtrend

Global stock markets: Dow30, +0.2%; S&P 500, -0.4%; Nasdaq, -1%; Nikkei, +0.1%; Kospi, +0.3%

On Tuesday, Nifty started the session on a flat note and was up about 1% in the first hour of trading. It pared gains in the next couple of hours and briefly turned negative. Strong buying in the second half helped Nifty close near its day’s high. Tuesday’s volume was slightly lower than the previous session.

Barring Nifty IT (-3.3%) and Pharma (-1.2%), all sectoral indices closed in the green. Nifty PSU Bank (+4.5%) advanced the most, followed by Auto (+4.3%). Financial-related sectors, which dragged the market in the last few sessions, led the rally on Tuesday.

On Monday, we moved the market to a Downtrend as Nifty breached its 50-DMA on higher volume, distribution day count increased to seven, and many leading stocks failed to hold their logical support levels. Tuesday’s session was considered Day 1 of an attempted rally as Nifty traded above yesterday’s low of (14,249). We need two more such sessions to change the market status to a Rally Attempt. From there, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend. Should this occur, the focus will be on ideas breaking out of early-stage base patterns and showing the best relative strength, with good accumulation.

 Key News

Wipro (Nse) will declare its Q1 FY22 results today.

Infosys declared its Q1 FY22 results. Profit declined 2.3% q/q to Rs 5,076 crore, while revenue grew 1.5% q/q to Rs 26,311 crore.

5paisa Capital received board’s approval to raise fresh capital of Rs 250.87 crore through preferential issue of equity shares.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 30%; Rally Attempt, 12%; Uptrend Under Pressure, 52%; Downtrend, 6%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 65%; Rally Attempt, 10%; Uptrend Under Pressure, 25%; Downtrend, 0%.

At 8:00 am IST, the SGX Nifty Futures was trading at 14,381, compared with Nifty’s close of 14,311 yesterday.

Market status: Downtrend

Distribution days: Seven

Global stock markets: Dow30, -0.2%; S&P 500, +0.01%; Nasdaq, -0.4%; Nikkei, +1.1%; Kospi, +0.9%

Yesterday, Nifty opened over 200 points lower amid imposition of night curfews in several states and possibility of imposition of lockdown in Maharashtra. Losses intensified as the session progressed. It lost another ~350 points from opening and closed 600 points lower compared with the previous session. Yesterday’s session qualified as a distribution day as the fall was more than 0.2% on volume higher than the previous session. Nifty found support at its 100-DMA, which has been a crucial historical support. Barring Nifty Pharma (+0.5%), all the sectoral indices closed in the red. Nifty PSU Bank (-8.7%) declined the most followed by Realty (-7.3%). Financial-related sectors continued to drag the market down.

We moved the market to a Downtrend as Nifty breached its 50-DMA on higher volume, distribution day count increased to seven, and many leading stocks failed to hold logical support levels. Looking forward, we will shift the market to a Rally Attempt if Nifty establishes a bottom and stays above today’s low (14,249) for three straight sessions. From there, we would prefer to see a [follow-through day] before shifting the market back to a Confirmed Uptrend. Should this occur, the focus will be on ideas breaking out of early-stage base patterns and showing the best relative strength with good accumulation.

Key News

Tata Consultancy Svs. declared its Q1 FY22 results. Profit grew 6.3% q/q to Rs 9,246 crore, while revenue grew 4% q/q to Rs 43,705 crore.

Hindustan Copper (Nse) approved the issue price of Rs 119.60 per equity share for the QIP issue.

Foreign institutional investors (FIIs) net sold shares worth Rs 1,746.43 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 232.76 crore.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 30%; Rally Attempt, 12%; Uptend Under Pressure, 52%; Downtrend, 6%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 65%; Rally Attempt, 10%; Uptend Under Pressure, 25%; Downtrend, 0%.

At 8:00 am IST, the SGX Nifty Futures was trading at 14,643, compared with Nifty’s Friday close of 14,835.

Market status:Uptend Under Pressure

Distribution days: Six

Global stock markets: Dow30, +0.9%; S&P 500, +0.8%; Nasdaq, +0.5%; Nikkei, -0.5%; Kospi, +0.02%

On Friday, Nifty’s session was rangebound compared with its previous sessions, but the index closed above the 50-DMA after breaching it intraday. Volume was slightly lower than the previous session. The index was trading close to its 50-DMA throughout the week. It breached its 50-DMA on Monday and retook on Wednesday. Last week, the sectoral reaction was mixed. Nifty Metal (+6.6%) advanced the most, followed by IT (+5.3%) and Pharma (+5.0%). Financial indices declined the most.

The index is currently hovering around its key moving averages. From here, we would like the index to firmly trade above its key moving averages.  If Nifty remains above moving averages and advances from there, focus on quality ideas, ideally from leading and/or improving sectors and groups that are emerging from constructive consolidation. Avoid or reduce risk in lagging ideas, trading below major moving averages. On the flip side, we will change the status to a Downtrend, if one more distribution day is added or if Nifty makes a decisive breach of its key moving averages and if market leaders show signs of deterioration in their price actions.

Key News

Tata Consultancy Svs. will declare its Q1 FY22 results today.

Infosys will consider a share buyback proposal on April 14.

Solara Active Pharma Scis received the board’s approval for the amalgamation of Aurore Life Science, Empyrean Lifesciences, and Hydra Active Pharma Sciences with the company.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 30%; Rally Attempt, 12%; Uptend Under Pressure, 52%; Downtrend, 6%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: [onfirmed Uptrend], 65%; Rally Attempt, 10%; Uptend Under Pressure, 25%; Downtrend, 0%.

At 8:30am IST, the SGX Nifty Futures was trading at 14,880, compared with Nifty’s close of 14,873, yesterday.

Market status: Uptend Under Pressure

Distribution days: Six

Global stock markets: Dow30, +0.2%; S&P 500, +0.4%; Nasdaq, +1%; Nikkei, +0.4%; Kospi, -0.3%

Yesterday, Nifty opened higher and remained in the green throughout the day. However, the index was highly volatile on account of weekly F&O expiry. At one point, Nifty was up over 1% but it quickly pared gains and ended just 0.4% higher. 62% of the Nifty50 stocks closed in the green led by steel and cement stocks. On the sectoral front, the majority of indices closed in the green. Nifty Metal (+3.9%) advanced the most followed by IT (+1.2%). Financial-related sectors continued to drag the market lower. FIIs net bought shares worth Rs 110 crore, while DIIs net bought shares worth Rs 552 crore.

On Wednesday, Nifty reclaimed its 21- and 50-DMA, and managed to close above it. If Nifty remains above moving averages and advances from there, focus on quality ideas, ideally from leading and/or improving sectors and groups that are emerging from constructive consolidation. Avoid or reduce risk in lagging ideas, trading below major moving averages. On the flip side, we will change the status to a Downtrend, if Nifty breaches its 50-DMA and if market leaders show signs of deterioration in their price actions.

Key News

Zensar Technologies entered into a global strategic partnership with the U.S.-based Claimatic.

Ashok Leyland and Siemens entered into a MoU to build a co-operative technological partnership in the electric commercial mobility segment and execute eMobility projects in India.

Srei Infr.Fin. (Nse)’s Srei Equipment Finance receives expression of interest for up to $250M capital infusion from international PE funds.

INR came under pressure after RBI’s commitment to buy Rs 1T bonds from the secondary markets in Q1 FY22. INR slips to Rs 74.6 per USD.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 30%; Rally Attempt, 12%; Uptend Under Pressure, 52%; Downtrend, 6%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 65%; Rally Attempt, 10%; Uptend Under Pressure, 25%; Downtrend, 0%.

At 8:00am IST, the SGX Nifty Futures was trading at 14,930, compared with Nifty’s close of 14,819, yesterday.

Market status: Uptend Under Pressure

Distribution days: Six

Global stock markets: Dow30, +0.1%; S&P 500, +0.2%; Nasdaq, -0.1%; Nikkei, -0.4%; Kospi, +0.1%

Yesterday, Nifty opened 100 points higher and reclaimed its 21- and 50-DMA. The volume was relatively higher but below average. Nifty made an intraday high of 14,880 but closed 60 points off highs. On the sectoral front, all indices closed in the green. Nifty Bank, Financial Services, Auto, and IT closed 1.0–1.5% higher. Broader market outperformed the benchmark indices. The RBI’s MPC unanimously decided to keep the repo rate unchanged at 4%. It continued to maintain its accommodative stance as long as necessary to revive growth. FIIs net bought shares worth Rs 227 crore, while DIIs net bought shares worth Rs 381 crore.

Yesterday, Nifty reclaimed its 21- and 50-DMA, and managed to close above it. However, the distribution day count remains high (six), with one expiring today. If Nifty remains above moving averages and advances from there, focus on quality ideas, ideally from leading and/or improving sectors and groups that are emerging from constructive consolidation. Avoid or reduce risk in lagging ideas, trading below major moving averages. On the flip side, we will change the status to a Downtrend, if Nifty breaches its 50-DMA and if market leaders show signs of deterioration in their price actions.

Key News

Muthoot Finance plans to raise Rs 1,700 crore through public issue of secured redeemable non-convertible debentures. The issue opens on April 8.

Hindustan Copper (Nse) opened its QIP issue for subscription on April 7. The floor price has been fixed at Rs 125.79 per equity share.

Prakash Industries achieved the highest-ever sales of around 2,72,142 tonnes of steel in Q4 FY21. Sales grew 8.85% q/q and 31.16% y/y.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 30%; Rally Attempt, 12%; Uptend Under Pressure, 52%; Downtrend, 6%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 65%; Rally Attempt, 10%; Uptend Under Pressure, 25%; Downtrend, 0%.